charles: let me tell you something, home prices are going up because obama made it so tough for banks to foreclose. stuart: i am watching the clock. we still have another 45 seconds of this for heaven sake. why are you not watching -- why are you not wearing a tie? i let you get away with that. you see. you see. charles: i made it on time. stuart: don peebles is a nice guy. he does not want higher tax rates. he wants lower tax rates. charles: he does have a conservative look.

it goes against all of your core principles to back president obama. stuart: by the way, thank you liz. now it is time to give it to connell. connell: you did look like you are getting along very, very well. i am connell mcshane. has housing finally turned a corner? that will be our big debate and discussion this morning. jamie dimon says, yes, it is going back up. >> it will not get better in spite of the economy. supply and demand. for household formation. connell: wait a minute, a drop in sales came in. we will sort all this out coming up. and flipping houses and fixing

them up. vanilla ice, of all people, is with us during this hour. republicans need to get tougher and cut federal programs. 58% of americans oppose anything happening. we are going to start with the stock market. we have been talking about this. we are up again today with nicole petallides covering it from the new york stock exchange. nicole: it shows you what we are just 300 points away from the all-time high. that is on the dow jones industrials. here we are today, still showing some games.

we came off of our earlier highs. you have drug stocks and tech stocks doing well. we have to take a little breather. we cannot just shoot right up. let's take a look at netflix. a new 52 week high for netflix. you have the analyst touting him. they have bad subscribers. people are turning away from some of their cable providers and channels such as hbo and showtime and moving over to netflix. that really shows you how dramatically it has jumped. up 14% today. back to you. connell: we are all set to talk about a turnaround in the housing market. just about an hour ago, we found out that new home sales fell in the month of december.

good to see you, chris. what is going on in the housing market? >> i would not look at a one-month market. the first of year since 2005. you know, there is a lot of bouncing around in salvador -- bouncing around in some of the data. connell: bob shiller is a regular on our show. he talked about not getting ahead of ourselves. in 2009, we started to think things were turning around and they really were not. >> we are not japan. a lot of people have been talking about slow growth in the u.s. and japan. japan saw numbers drop for years. what has helped the u.s. housing market is not so much how we finance it, people need to live

somewhere so there are investors buying homes to rent them. they have to live somewhere. as long as there is population growth, housing will do okay. connell: there is a lot of demand, as you talked about. talk about credit being as tight as it is. interest rates are extremely low. how does that situation changed throughout the year, or does it change? >> i think the big question will be regulatory. we will have a qr averell. we will have, potentially, a change in leadership for freddie mae and freddie mac. will we see private capital come back and what we see the gsa do?

connell: you had been outspoken over the last few years since the housing crisis about what the role of government should be and how government should get involved. what are your thoughts now? maybe housing has finally turned the corner. how do, we, the united states, handled the downturn? >> i will give you one example. freddie mac just came out with a recent study that the people who refinance their home had a less default rate. connell: we will not get that now. >> goldman sachs says 21 million people take advantage of low rates and save money on their mortgage. i still think there is room for it. i also think the government

should work to normalize credit. unfortunately, the government is still in nine out of ten mortgages. connell: thanks a lot. appreciate it. stop being the stupid party. that is what louisiana governor bobby jindal has been saying. also, maybe, more importantly, he just wants to take a knife to federal spending. there is a new poll out that shows 58% of people who were polled opposed any spending cuts to medicare. martin bailey joins us now. what about that idea, arjun? the democrats seem to be at the right side of their existing spending cuts in terms. >> if you look over the next

five years, the budget outlook, i do care is important, but not preeminent. if you look out ten, 20 years, medicare is really the big story. if we will tackle the problem, we really have to think about changing the structure of medicare in a way that we don't get explosive growth that we would normally get. it is a big deal and something has to be done. as you say, cutting medicare is very unpopular. people don't like it. it is not just democrats. it is both sides of the aisle. connell: what is the democratic plan for cutting spending when

there is not necessarily an incentive on the side to supplement that? they have to have an incentive to come up with a plan that, i think, we all agree is necessary. >> look, to give him credit, there are a lot of measures that were part of the affordable care act that are intended to help healthcare costs, medicare costs, by putting in changing incentives, to lower rates, a number of good ideas are in there. they are marginal things that would help. i think what is difficult for the republicans is to propose

any kind of fundamental redesign to get away from the system, which, i think, generates overtreatment. that means we do not necessarily get the best treatment in the world, we just get a lot of treatment. connell: at some point it will become necessary, until that point, whatever that point is, we can speculate about when that time will be, until that point, you do not get a sense that there will be political action. >> i think it is probably the case that we will stumble along from minor crisis to minor crisis. we probably need a broader tax increase than we have. i do not think it is enough to just hit the rich. you have to tackle the fundamentals in the long run which is medicare.

those are both very unpopular measures. i do not think it will happen until we force them to happen to the affect of markets or the realization that we have just gone beyond the point where something needs to be done. connell: thank you for today. it was a pleasure to have you on. we will go on and talk about a number of different things including samsung. pretty good numbers. the galaxy hoping for the company account for one of four new phones that are being shift. juan williams on making washington, d.c. a state and why he does not agree with some fellow democrats on this. that is all coming up on "markets now." let's take a look at the oil market. ♪ [ male announcer ] you are a business pro.

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connell: we are back on the market now. a year ago, the new york stock exchange try to merge with its german counterpart. we found a new dance partner. liz claman over and davos with the nyse ceo just like she was a year ago. liz: we are joined by the new york stock exchange ceo. we were just saying what a difference one year makes.

things looked pretty dim. that merger did not go through. let's talk about this. >> i set it at the dinner we hosted last night that at this time last year we were closing a chapter in the book with a rather unhappy ending. we are now opening up a new chapter and hopefully this one will have a happy ending. liz: did you ever think that the ice would have been a partner? >> we always thought that we were good partners for each other. i think, as people arguing now, in fact, after their attempt failed, i did reach out and say, look, i understand what you are doing. i did not take it personally. let's not burn a bridge. you always have to keep your options open. liz: there are no guarantees.

>> i am happy to report that there are not nearly the stumbling blocks as there were enough last one. to be perfectly honest, the last thing i would have recommended was engaged in transaction like that. there is so little overlap in these two companies. we think the path is a lot smoother and a lot less controversial. liz: i know you cannot get into a lot of details, but what is a realistic timeframe for time approval? >> the outside lawyers are telling me by the end of the year. i am more hopeful that it is a q3 event this year. that is what we are hoping for. liz: very entrepreneurial. what role do you really think

you will take at the new york stock exchange? when you have a guy like that too is a very strong minded person, are you concerned about any relationship issues? >> we did not just meet each other. we know each other well. we like each other. we are probably the two most entrepreneurial ceos in our industry, i think. we have always gotten a long since the first time we met. i think both believe that the design of this company, if it works properly, you have the leader and the capital formation business which is sort of my area of expertise and you have the leaders and derivatives trading business which is really what jeff has built. we do that properly, i think it is a pretty popular company. liz: is he here at davos? >> he is not.

he is actually meeting with other policy makers in europe this week. i think you will see us divide and conquer. you will not see us in the same place very often. we do not think that is a sensible way to run a business. liz: here you are in davos. we have seen a massive shift word electronic trading. can you really honestly say that they are here to stay? why would equity trading be any different model? >> >> there is a lot of answers to that question. this is a story that seems to repeat itself. when my predecessor got to the nyse, he thought the floor was going to go away. when i arrived, i was told the floor would go away. all we have done is invest and,

if anything, the last year has taught us that having a pilot who can take the plane off of autopilot when the computers are running a little en banc or having a model where people have obligations and you have full transparencies so when someone is building an ipo, everyone in the world knows exactly what is happening. i think the model is here to stay in the floor has an important part to play in that. liz: okay. we will remember you said that. we have a motto for traders watching right now. as we wrap up from davos, switzerland, how exhausted are

you? >> we are optimistic. it is balanced. it is not over the top. they are a lot more balanced than any other year. this can be a pretty pessimistic place. they focus more on doom and gloom sometimes, but i am coming out with a lot of optimism. liz: thank you so much. the head of the new york stock exchange. we will be bringing you new reports all day long. wait until you hear some of the interviews. as i send it back to you, on behalf of our new york on paris, we will see you from davos. connell: liz claman covering the world economic forum. we will go back to the floor of the new york stock exchange in just a few minutes.

we are also covering the weather, as we have been all week long. the deep freeze now popping up the energy markets. we will go back to one of the big topics of the day, the housing market. we will go there with vanilla ice. the entertainer is here. he is not just about music anymore. he is putting his stamp on real estate. vanilla ice is just ahead. let's take a look at our kids. this time around it is currencies. ♪ twins. i didn't see them coming. i have obligations. cute obligations, but obligations. i need to rethink the core of my portfolio.

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♪ >> 25 minutes past the hour. a federal appeals court has ruled that president obama violated the constitution. the u.s. court of appeals for the d.c. circuit had the president did not have the power to make those recess appointments. president obama is claiming that he acted properly. the department of education says they must provide -- for disabled students.

now students with disabilities must be provided equal access to enter curricular sports or have their own leagues. the deep freeze continuing across much of the u.s. with arctic arctic air keeping temperatures in single digits or the low teens for the midwest across new england. those are your headlines. connell: thank you very much. though cold weather is driving up your auto bill. it may also be a good investment. jeff flock on the story from the pits in the cme. >> there has been a lot of volatility. traders love volatility. if you look at the price over the course of the past month, you see a big run-up. that is though cold weather we are talking about. it is winter here. >> it will be 50 degrees next week, is it going to go down?

jeff: if we look at five years, tremendous fluctuation. >> yes, there is. i like the price of natural gas. i think i want to invest in it. it will be used more and more so there will be a lot of demand. jeff: exxon is the biggest producer. chesapeake is a big player. >> all the companies to look at, want to look at is the team builds pick in. they will provide natural gas for the truck order that goes across the u.s. jeff: possibilities if you want to play natural gas. combing all big on oil. connell: jeff flock out there in chicago. thank you, sir, as always.

how about our nation's capital as the next stage? juan williams says he does not want that to happen. then, vanilla ice turning a profit in the housing market in doing it on television. we will talk to them about flipping a house and renovating and everything else. he is coming up live in the studio with us. let's take a look at some of the winners on the s&p 500. netflix up again big time. ♪ ♪ [ male announcer ] this is karen anjeremiah. they don't know it yet, but they' gonna fall in love, get married, have a couple of kids,

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connell: markets now continues. nothing crazy today. nicole petallides has another addition of stocks now. nicole: what? did somebody say starbucks? this is starbucks on the floor of the new york stock exchange. we are not the only ones being the patrons of starbucks. the stock is doing so well. they see their profits on the rise by 13%. beating expectations of 6%. you talk about what the stock has done over the last 52 weeks. it is up 13%. they remain extremely competitive. over the last three months, up about 20%. there is not a moment that there is not a customer here.

high customer traffic here in the u.s. have offset the rising costs. they did well here in the u.s. and asia. connell: one guy getting a copy. good for him. taking a break. starbucks is a very big story. making washington, d.c. a state. if washington lawmakers get the way, it could be a stay. joining us to discuss that right now is a fox news contributor, d.c. resident, juan williams. >> you know, i think i may be one of the few residents in the district of columbia and few democrats. the issue is representation. connell, i am all for having myself, my family properly represented. currently, we do not have a bow. making the district of columbia a state is exactly contrary to

what the founding fathers had in mind. i think the answer is something, and go to your dictionary, connell, it is called retro section. we could go for congress and senators. connell: why would you want to do that? you'd be identifying with one of those states then which would defeat the purpose on whether you want to be separate from all the states. >> you still have a federal district. the federal triangle area. white house, capitol hill, supreme court, all of that can be preserved. the city now, which is outside of that federal triangle area, that is what i am saying. allow the residents to have proper representation. connell: do you notice a big difference?

as a resident, someone who lives in d.c., is it something that you noticed? >> one, i just think it is the right thing to do. secondly, the consequence has been that historically congress ran this place. it was cheaper to get to capitol hill then it was to go around the corner. there is very little public parking in the district of columbia. they lobbied to congress. there is so much like that that has been historically controlled by congress and not by the folks that live here.

it has had a detrimental impact on everything from the quality of our schools to the quality of our political life here. connell: why not talk about it a little bit today because you know a lot about it. thank you very much. juan williams. we will talk, coming up, about some of the biggest potential roadblocks. talking about fear in the markets coming up. before we get to any of that, rob van winkle, better known as "vanilla ice". how you can make some money and the housing market. ♪ connell: first, treasuries. ♪

>> i am lori rothman with your fox business brief. at&t says the license covers 42 million people.

jumping on the return of wall street. childcare provider raising money in its initial offering. horizon trading on the nasdaq since 2008 until being taken private by bain capital. come sunday, it will cost you a penny or two send that card to grandma. first-class stamps are going up to $0.46. that is the latest from the fox business network. giving you the power to prosper. ♪ [ male announcer ] where do you turn for legal matters? maybe you want to incorporate a business. orrotect your family with a will or living trust. and you'd like the help of an attorney. at legalzoom a legal plan attorney is available in most states with every personalized document to answer questions. get started at legalzoom.com today.

and now you're protected. [ male announcer ] how do you turn an entrepreneur's dream... ♪ into a scooter that talks to the cloud? ♪ or turn 30-million artifacts... ♪ into a high-tech masterpiece? ♪ whatever your business challenge, dell has the technology and services to help you solve it. that's not much, you think. except it's 2% every year. go to e-trade and find out how much our advice and guidance costs. spoiler alert: it's low. it's guidance on your terms, not ours. e-trade. less for us. more for you. connell: we are back. i was not kidding around when i told you we were going to have vanilla ice on.

debt collectors are notorious for their nonstop phone calls. they are now invading social media. the government they have something to say about this. shibani joshi is in the newsroom. shibani: we have all had this happen to us. and unfamiliar friend request on facebook. some of us to either impress our love and accept that unknown friend. the debt collectors are now getting more social trying to reach you through the web. they estimate that as many as 30 million consumers are being pursued by debt collectors online including places like facebook. they are chasing down around $12 billion in debt. they say maintaining and keeping

on top of that collection is a top priority, but the rules about using social media are still unclear. that means companies like jpmorgan, capital one and debt collectors could face new regulation on how they contact debtors. right now it is the wild wild west and they can reach you anyway they can get a hold of you. a good reason to stay clear of those unfamiliar faces on facebook. connell: shibani, thank you very much. shibani: i am excited about vanilla ice. connell: we were talking earlier about housing. we do have now a completely different take on housing than what we normally have from economists and these type of people. we have vanilla ice on now. in addition to the music, he has been out there flipping houses, renovating them. they have made a television show

about it. it is the vanilla ice project. rob, i am not going to call you vanilla ice. >> i feel like ice with how cold it is out there this morning. connell: everyone knows who you are, seriously, i want to talk to you about housing. how did you get started? why? why did you get into it at the beginning? >> i bought a lot of homes around the country. i thought i would be working in l.a. so i bought a house of their next new michael j fox. dallas, miami, all over. i never saw one of the houses because i went on tour for four years. i sold it and made a lot of

money. connell: did you get caught up a few years ago in the crash? >> yes, i did. it has evolved. right now, you can buy homes a lot cheaper than you can build them for. open your eyes, people, the housing arcade is on a rise. that is it. it is back. it is doing better than ever. there are these pockets that are gold mines. paul beach is one of them. that is where i do my show. it is amazing to see that you can buy these homes. connell: it is all high end stuff, right? from what i have seen from the show. >> we have all seen these short sales, foreclosures, you know. it is a beautiful neighborhood and then one sour house there. the pool is black and the weeds are taking over. connell: how do you do it?

>> the key to the success is to buy the house way below the appraised value so it allows you to put money in it and sell it to someone below the appraised value all fixed up. i had acrylic fish swimming in the staircase. it was the most exotic house. i felt like i was living in a nightclub. i thought instead of hiring more decorators, i did it myself. when you go through so much hard work renovating a home, you sit back in the and and you go, wow, i did that. connell: this show is on the do it yourself network. vanilla ice project is the name of the show. from what i have read and seen, you still do some music, but it is completely different than what everyone remembers.

>> right. it is all hip-hop, but it is a different form. i am now doing my techno house music. connell: the thing that i think is interesting, everyone knows you, you were like 16 years old, did you like it? did you like doing that kind of music? >> well, i mean, you know, you get in where you fit in. i always enjoyed it. i have a passion for it. it is a roller coaster. you live in artificial life while you are out there playing for all the big crowds. you have to come back into reality.

4b, that was a weekend that lasted for a few years. i figured my purpose out. connell: nice to meet you. good luck. >> appreciate that. connell: rob biblical. 10:00 o'clock eastern time is when the show airs. let's go back to nicole petallides. nicole: i really what he is doing now and what he did back then. that was a great interview. i enjoyed it. let's take a look at apple. all the shareholders today quite disappointed. hitting a new 52 week low. it is out 443.78. each tick is a new low.

they really disappointed wall street with the sales and outlooks they have seen. they have cut down the demand projections that they expected. however, they did still have a record sales for the iphone, ipad and etc. some of the suppliers are coming under pressure. i want to take a look, also, at the broader markets. we talk about the dow at new highs, our five-year highs. apple hits a new low. the down right now up. the s&p is up one quarter of 1%. it is at 1499. the nasdaq is in the green today. back to you. connell: thank you very much. we all know what fdr had to say it way back when about fear.

that still dictates what people do when money is on the line. we will talk about the financial market and fear coming up. a pretty good discussion. we hope. speaking of the markets, look at this, the nasdaq, here are some of the individual winners. priceline and expedia doing very well. and, of course, starbucks like nicole talked about. we will be right back. ♪ before copd... i took my son fishing every year. we had a great spot, not easy to find, but worth it. but with copd making it hard to breathe, i thought those days might be over. so my doctor prescribed symbicort. it helps significantly improve my lung function starting within five minutes. symbicort doesn't replace a rescue inhaler for sudden symptoms. with symbicort, today i'm breathing better. and that means...fish on! symbicort is for copd including chronic bronchitis and emphysema. it should not be taken more than twice a day.

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connell: the story of the week has been this rally in the stock market with investor fears seemingly leaving the marketplace. how long will it last? chief global economist -- how

about that? how long will it last? >> that is a good question. fear is slowly dissipating from the market. there was a lot of europe last year. as he look forward to 2013, the key of what will happen this year did not happen last year. the mayhem prophecy did not come through. chinese real estate did not blow up. germany and greece are both still in the euro area. despite all the doom and gloom from last year, those big catastrophic event did not happen. i think it is the fading of that risk that is helping the market today. it was not just last year. the most accurate industry is

actually mineralogist. they are about the only guys that get it right. we pretty much know what the weather is going to be. it is tough to kind of, know what to expect in the new year other than that the opposite. >> i do not know about always wrong, but it certainly is true that forecasters do not have a great record. connell: what are you expecting this year. it could be a completely different environment. many of those doomsday people are still expecting a mess, politically. after a while, you start to say, when will be the time that we do not get a last-minute deal? there is some percentage that fear that. is it reasonable? >> i think that is true. there certainly are some

possibilities. the real fear has been kind of dissipating from the market. for example, we have lowered the downside scenario from 30% to 15%. as we look forward to the u.s. economy, there really are a lot of positives. housing is coming back very nicely. job growth has picked up a little bit. consumer confidence with the house prices and stock prices rising. that is coming back. that will be a big support to consumer spending. gas prices are not outrageous. i could give you a list of maybe 30 companies, a new factoring companies, that are looking to move their manufacturing back to the u.s. connell: we have seen a lot of that. you are right. bob, thank you. the third guest to be positive this hour on the housing market.

thank you for coming on. >> thank you very much. connell: regulation nation. we will be talking about all these new rules coming up that may force big money in the adult film industry to leave the state of california. dennis kneale and cheryl casone are all over that story. they are straightahead with the ceo of vivid. you cannot miss that. we had vanilla ice and they have the ceo of vivid. what a day. keep it right here on fox business. ♪

cheryl: i am cheryl casone. dennis: i am dennis kneale. the bull's pushing the dow within 400 points of its all-time high. all street insider, the biggest gaming sectors, explain why. cheryl: bad news good news for

the housing market. way up for the entire year. this recovery is for real. dennis: new regulations forcing the big money-making porn industry to leave california. and it is top of the hour. stocks every 15 minutes, and nicole petallides at stock exchange doing well. nicole: so far so good. the dallas 32 points. those five year highs, at the top of the show, not too far from the all-time highs. a stone's throwaway, 13,857 and the s&p 500. almost 0.2% at three points. and jpmorgan and microsoft doing well. new highs on one end and new

lows on the other. new 52 week lows, 441, and after it was $700, the top spot of the largest market camp for publicly traded company. and concerns about the sales, al look for apple now laying on this big tech names. dennis: liz claman, sitting back with microsoft. in thomas, switzerland, bill gates's children have given into the cool factor of apple products. >> they never asked. and windows pcs. dennis: microsoft reported earnings last night and results were nothing spectacular coming in line with the results last year at this time kind of flat.

ed mcguire is tells what it will take to make microsoft cool again, senior analyst, you were a patient man who recommended microsoft in july of 2010, never taken the buyout, stock was $24 then. it is around the same range now. why are you still patient? >> taking the long view on microsoft in number of pieces are coming together in a broader strategy. ready to talk to the three strings in a cloud. us story about integration and now you and transition to being more a product plus services company data products company. these take time and right now windows viii cycle is off to a slow start but with the availability of more types of devices in the market over the next year we should start to see things accelerate. dennis: this could be an oblique rear cover microsoft because it was a legacy of windows that made it great but with windows viii a total redesign taking into account t mobile iraq and

corporate customers are bulky. we use the windows operating system that is a decade-old. >> you have to balance the needs of your existing customers with the changing environment around an end point. you see a huge amount of fragmentation, phones turning into tablets, laptops turning into tablets and hybrid. a bunch of different types of devices and microsoft has built and operating system in the works on all of them but they need to categorize it. dennis: an overly large phone that is so large it looks like a tablet. why not do something more graphic here? microsoft was up near the $60 range back in 2000, the rest of the stocks, everything they lost, microsoft has not, why not say steve ballmer, you need to find a mobile hotshot to run this company, you need to hire jonathan ives from apple but why not get rid of all along? >> that point has been on a lot of investors' minds over the last few years. the board seems to support him. as long as he has board support

he is in place but retirement age of 60 could be coming. certainly a fresh face, a fresh set of eyes are a great way to brand the company, wearing a black turtleneck. dennis: microsoft invests in $2 billion and $22 billion buyout of dell but once again they are going into the old fading business. why doesn't microsoft by the rim? >> that opened the big can of worms. they do better by letting rim stand on their own. the potential deal has a lot of interesting implications because dell is making the transition to being a cloud service provider too so it is not just about shoring up their legacy pc business but providing a new way to deliver ip storage and applications. dennis: we saw leno vote, one of the biggest pcmakers in the world, the buyer of the ibm pc business, they're interested in reporting on rim, not dell. they thought they should buy

dell, more pcs and more scale but even when no bono's the business is over. is that the biggest reason microsoft may never rise? >> obviously the economic aspect of the recurring revenues are providing a nice floor to the business, to the stock, 3.3% dividend yield of. for income investors it is a decent -- dennis: never going to zero. >> a growth company. are they acting like a grown-ups? there is a test over the next several months. i would look at their enterprise business and come back to the growing visibility as what a lot of investors are missing is the actual momentum that is happening in their business. maybe they are not going to be another apple butter and other ibm. dennis: you like to be part of an. thanks for being with us. you get paid for your advice whereas mine is free. thanks. cheryl: if it is your money, you should be able to get to it.

a new proposal in washington would make it harder for money-market fund customers to get their own cash. dennis: peter barnes is joining us from inside the beltway with a story that is going to get you upset. peter: regulators say they are just trying to make trillions of dollars in money-market funds safer for investors. the funds are typically valued like cash at $1 share but during the financial crisis in 2008 one of the big funds, the reserve fund broke the buck because it invested in short-term debt of lehman brothers which went bankrupt. customers panicked. there was a run on money-market funds so the treasury had to provide a taxpayer backstop to halt it. regulators and taxpayers don't ever want to do that again so they issued some reforms for the industry in 2010 but they have been battling the industry to do more. yesterday the industry proposed circuit breakers to prevent a

customer runs during a crisis. the funds could suspend redemptions for 30 days or if customers really needed their money they could pay 1% redemption fee, something called a liquidity fee. the industry opposes tougher ideas from the regulators such as letting asset values float below $1 holding back some customer cash for a short waiting period until things settle down or requiring the funds to hold capital like banks. regulators are looking at the industry's proposal but they worry, quote, stand by liquidity fees and temporary gains may increase the risk of preemptive runs by investors who will be motivated to redeem their shares before a fee or a gate is triggered. cheryl: more regulation is going to solve the problem if there's a financial crisis. makes so much sense. thank you. peter barnes out of washington. dennis: it is cold outside. may be bad for you but good news

for natural gas traders. jeff flock ahead of the cme. cheryl: a great year for home sales. against 2 says the housing recovery is sustainable. dennis: regulation nation. new rules may force the poor and industry to leave california. we have the vivid ceo coming up. cheryl: we do this every day at this time, take a look at the oil markets and we are at $95.84 down $0.11, market check coming up in a minute. we will be right back. ♪

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building blocks for the heart of your portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. cheryl: as the dow continues to edge closer to its all-time high our next guest says now is the time to dump two alatas sectors in the markets, housing and financials. todd schoenberger, financial stocks, capital managing partner. good to see you. why do you say, quote, this is a

quote here, you a financials and housing. 8? >> that is right. you had this administration right now that has banks in its cross hairs. you see it with mary jo white going in as fcc director. going forward i have to say i don't see anything that will help the financials. it says of human capital, the report, solid earnings that going forward you need that risk component and it is just not there right now so i question where the revenues are going to be. great to sell to the strength but i would go on the sidelines for the foreseeable future. cheryl: i could understand your trepidation about major financials. what about regional? the biggest and strongest performers of 2012. that is the piece of the financial pie that you like. >> that is the wild card. i would say go to this regionals. and the banks are good one. they took over a ton of these mortgages from wells fargo and

able to turn around. they were profiting very well. a great company and look at bankers in taxes. they have done exceptionally well. if you want to concentrate on those regionals those would work well. cheryl: you don't hate everything, you are a nice guy, you do like consumer discretionary. i do wonder, one of the better sectors of the year, 21%, paychecks are a lot smaller now. i you concerned this group might hit some pressure? >> it could. going forward i have to say people are going out to continue to spend. you cannot stop the resiliency of the american consumers. when i look at the big box retailers and think of consumer discretionary names they will continue to do well and we have seen that. a lot of pent up demand, holiday retail sales not that great and the take home a as a little smaller going forward for this year. cheryl: wants to ask about this also. some leisure picks you have and this is interesting.

you like a marriott, you even like carnival, the cruise line, during the recession they didn't do too bad but the stick with these names if we don't know what the economy is going to do after the fiscal cliff disaster? >> here is the difference with travel and leisure index. the reason it is doing well, it has done well mainly because of business travelers. now you have the act will resort traveler, the leisure traveler and that is why i like carnival cruise lines. people still get sick on these cruises the struggling to them especially baby boomers. they love all-inclusive deals with carnival will be one of the big winners especially now that we're in the vacation season. people want to get away because of the cold weather. //you don't think this will take a bit of a pause? that is a pretty big runup for carnival. >> you have to have real solid evidence out there to actually say just because the stock went up is time to pull back. you want to continue to look at -- still see the average rates

for these cabins that are going higher. right now peak time, it will continue through eastern. this is the reason you went to invest in a carnival cruise line. i would say going into the fall months would be the time to sell off but right now this is a great time to buy that stock and hold it. cheryl: short-term time frame, you also like delta. todd schoenberger, thank you, good to see you. dennis: let the record show that men still owes me dinner bet. cheryl: he has been traveling. dennis: 15 at the hour. stocks every 15 minutes. jeff flock on the trading pits of the cme where cold weather is whipping commodity prices. sandra smith at the data with it on consumer staples of the first to nicole petallides, 4 of the stock exchange. nicole: you know what i am noticing? as i am looking at the markets and we all know we add up arrows and really pushing the ayes in 2007, something that helps us

along is the banking index has turned into the green so names like jpmorgan and the the major average class to the upside and the banks are helping things along and take a look at the s&p 500, back at the 1500 level which is something traders are watching carefully as they too are excited about the fact they think is great we are pushing bajas not too far from 14,000 on the dow jones industrials, a majority of stocks in the green and the market pretty favorable here, $62 million versus $81 million so so far so good and not too far off 14 thousands of his era for the exchange. jeff: a lot of people talking about natural gas on the floor of the cme today. that is because it has been cold and if you look at the last month, a lot of whips oning in the natural-gas market, good news for traders that makes money that way but wall street they're all at a big story yesterday about our generation. natural gas has come on strong

in terms of power generation in the last several years, the price has come down but if you look at the five year chart a lot of power generators remember the jump in prices in 2008 went up to $11 and now 3.5. lot of people don't want to get caught in that but if you look at the numbers i just looked at the numbers and in 2008 colt 48% of the electricity generated. this year 37%. gas 20%, 30%, natural gas coming on. if you want to plan a natural gas i just talked to traders said over clean energy fuel, they are building up the big infrastructure to fuel the 18 wheel trucks that will run on natural gas. at stock is beaten down. might be a good play. that was the tip that i got today. cheryl: i will take it from there. take a look at the dow 70, look

at your biggest gainer, procter and gamble, computer staples stocks leading the way in today's trading session. if you haven't thought that earnings were dropping this rally think again. this is all an earnings story. proctor and gamble up nearly $3 at 7315 share, taking it up to the chart here take a look at year-to-date chart. this makes it very much a winning stock on the year, 4% in today's trading session back to the start of the year and would jump we are seeing in the stock. the laundry detergent, paper towels, consumer staples products, the stuff you need, procter and gamble sold more of it in the latest quarter, double their profits and a bonus for stock investors, raised their full-year outlook and that is why is getting a big boost in today's session. kimberly-clark competing company down after earnings 1/2%, pretty volatile so far in 2013. back to you guys. cheryl: lots of betting on the

consumer. jeff flock and nicole petallides. dennis: there's a new sheriff in town. rich edson ahead on why wall street should fear mary jo. cheryl: al gore flaunting his new book critical of the media, he just made big bucks on. that is wrong with the picture. here's how world currencies are faring against the u.s. dollar. we will be right back.

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>> 20 minutes past the hour your fox news minute, florida appeals court has thrown out four of two misdemeanor charges casey anthony faced about wind about her daughter cayley's disappearance in 2008. kc anthony was acquitted of murder in the 2011 trial but jurors convicted her of four counts of lying to law enforcement would federal appeals court has ruled president obama violated the constitution when he bypass the senate and used his recess power

to fill vacancies on the national labor relations board. the u.s. court of appeals for the d.c. circuit ruled the president did not have the power since the senate wasn't in recess in january of last year. the president is claiming he acted properly with the senate away from holidays. stacks the of georgia will not run for reelection in 2014, was a member of the bipartisan gang of 8 senators working at a major deficit deal. and considering raising taxes. those your headlines. dennis: president obama replacing jack lew who is becoming secretary--treasury secretary. cheryl: tiexiera of wall street, rich edson joins us from inside the beltway. >> president obama announcing his new chief of staff, the deputy national security advisers advised obama on

foreign policy for a decade as president and senator, taking over for jack lew was the pick to be the treasury department, one of ten promotions the president is announcing this year including security legislative and communications positions. the president nominated mary jo white to charity securities and exchange commission. the federal prosecutor in man hadn't turned private sector defender, nominated richard coeur great to be the consumer protection bureau. he is already there after the president circumvented objection last year with a recess appointments, news on those recess appointments, labor relations board recess appointments which have now been invalidated. republicans say that puts cor cordr cordray's appointment in question. dennis: industry and lenore of virus accounting for 50% of flu cases had come from australia. the center for disease control and prevention reporting any time a new strain emergeds it

has the potential to increase disease. flu season runs november through march and hit peaks this month. cheryl: time for your west coast minute. if you want to work at caesar's better get it on. caesars held its annual poker tournament to screen potential job candidates. 360 students played three days of texas told them, to find new employees that have critical thinking ability and social aptitude. and trading up $0.13, $8.04 sense. san francisco train riders getting wi-fi. free wi-fi for riders. the $2.8 billion of a grade and on board communication devices. video stream from the train cars. also means riders can access the service as well. here is a way to make the best

of freezing temperatures. the colorado international snow's tent -- championship brought in sculptors who make everything from mongolian horses to bears and a lot more. that is your west coast minute. dennis: bad news good news for the housing sector, home sales down in december unexpectedly bought up for the year. we have a guest i had who says the recovery is real and sustainable. cheryl: we have regulation nation, new rules forcing the porn industry concerned--to consider leaving california. one of the biggest names in the business, stephen hersh is here. as we go to break look at the winners on the s&p and netflix again. of big winner on the s&p 500.

the sixth new numbers show home sales through the number last year. the housing recovery is sustainable. al gore fighting the hand that fed him. dennis: it is 30 past the hour. we have stocks every 15 minutes. we have some news on hasbro. nicole: we are talking toys and job cuts. not a good name for them. they will have to cut about 10% of the workforce.

their revenue for the fourth quarter will not be as much as they anticipated. surely, the analyst will be disappointed when they get the numbers. the holiday season was not as lucrative as they had hoped for. let's take a look at the broader market right now, right now, the dow jones industrials -- cheryl: i will take it from here. phil flynn decided to take a lunch break. posting the first annual gain since 2005. up almost 20% year over year. brian lewis is here now. you say that this is it,

finally. it is finally turning the corner. >> big-time. those new home sale numbers of little deceiving on the surface. there are just not that many new homes out there to sell. i am speaking here in manhattan. we are at a 30 year low here in inventory. foreclosures have been absorbed. there has not been that many new starts. our numbers are low with new starts because they have not been building much. bring some more hammers to the table. cheryl: december home sales were down and that was a big surprise. in december, you had a lot of the wealthy buyers in this area selling their homes. >> absolutely. there was that rush. it is very interesting what im seeing out there now.

you have these people that have access to good credit. money is on sale right now. the cheapest we will ever see. cheryl: i say that money is free. [ laughter ] >> you have power right now. you have these hungry buyers with great interest rates with not a lot to buy. if you are a seller in certain markets, you have opportunity right now. you still have parts of the market where unemployment is still extremely high. >> we have a a long way to go in certain markets. we are raising rates. cheryl: you are right. >> you know that there is an endpoint to these good rates. there is going to be an increase. you are looking for markets. where i see the growth is where the unemployment is

outperforming the national numbers. boston got new york, areas where job growth is outperforming the national numbers. it is coming around in all of these areas. this is a great opportunity for the buyers. your money goes further. cheryl: the big criticisms from banks, they come on and tell us that the banks are not lending. you are saying you are seeing something different. >> well, manhattan is different anyway. cheryl: there are a lot of banks. >> this is a coal mining town. though coal mine is the banks. essentially, there is access to credit. or people who are employed want to be. this is a fantastic -- i am not an economist.

john paulson, famously shorted the housing market. hedge fund guy. may 2000, 2005, he was calling it sure. he was calling what we saw. this week, maybe a week ago, he said, this is the time. this is the time to buy. cheryl: brian lewis. thank you santa why pleasure. thank you for having me. dennis: next up, why new work safety rules may force the porn industry to leave california. steven hirsch is here from vivid. cheryl: list claimant will go one-on-one with a drugmaker and davos. ♪ it's a new day.

if your a man with low testosterone, you should know that axiron is here. the only underarm treatment for low t. that's right, the one you apply to the underarm. axiron is not for use in women or anyone younger than 18. axiron can transfer to others through direct contact. women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these signs and symptoms to your doctor if they occur.

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dividend starting next quarter. the medical diagnostic company lowered its initial public offering to nine dollars a share. that is more than 30% lower than its original range. according to a census data, the number of workers, at least 65 years old john from 12% in 199215% in 2010. that is the latest from the fox business network. giving you the power to prosper. ♪ to grow, we have to boost our social media visibility.

more "likes." more tweets. so, beginning today, my son brock and his whole team will be our new senior social media strategists. any questions? since we make radiator valves wouldn't it be better if we just let fedex help us to expand to new markets? hmm gotta admit that's better than a few "likes." i don't have the door code. who's that? he won a contest online to be ceo for the day. how am i supposed to run a business here without an office?! [ male announcer ] fast, reliable deliveries worldwide. fedex. dennis: hollywood loves blockbuster and so does the local drug business. liz claman is then davos on one company managing to bust balks. liz: the term blockbuster and the pharmaceutical industry actually means 1 billion in sales for a single drug in a

single year. this is not an easy thing to achieve. novartis has done it with its drug. we are joined now by the ceo of novartis. thank you so much for being here. >> thank you for having me. liz: i must ask you about the news that novartis is being investigated on a federal level in the united states for marketing drugs to iran. i need you to clarify what is going on here. >> yes, we were contacted by the u.s. attorney in texas. it was not novartis. actually, it was from an event that occurred in 2005. it really is as far as i would go. we are cooperating fully with the u.s. attorney and helping him continue with his investigation. liz: can you confidently say

that your units do not market drugs to band nations. >> that is absolutely correct. remember, you are talking about medicine, sometimes life-saving. there is a protocol to which you would potentially market to any country in the world because of the life-saving nature because of some of our drugs to which we would fully comply. liz: in 2013, or at least at the end of 2013, we will not be seeing that fails. >> as we exit the 2013 year, we are entering a new growth phase. that is for three reasons. we have a record number of launches that are already on the market. secondly, we are getting more exposure to a virgin markets. as that grows as a bigger% of our business, we will generate growth. the third reason is that our exposure to generic erosion

reduces significantly in those years. i have given an outlook of sales growth at least mid- single digits for those years. liz: one of the drugs that we watch being launched at fox business was her multiple sclerosis. that was two years ago that you came to fox business to talk about that. you have reached this so-called blockbuster status. did you expect, two years ago when you spoke with us, that that would be happening so quickly? >> it has absolutely been a tremendous success for novartis. more importantly, it has been a success for patients. liz: you have submitted some management changes. you have some leaving to pursue

retirement and other things. there is also the guy who kewpie doll for ceo. is that an odd arrangement? >> i do not think that it is odd. if you think about them, he has decided he does not want to stand for reelection. he has had 17 years at novartis. he really did shape the company. he decided that now would be a good time, given that the company is doing well and the strategy is on track. i worked with him very well. the board has decided, though, to change the chairman from a full-time job to a non-negative job. managing the board and governance of the company. i think we will work very well together. liz: the ceo of novartis. america running a swiss

pharmaceutical company. thank you so much. i send it back to you in new york. cheryl: "countdown to the closing bell," i will be there with you. stocks now and every 15 minutes. nicole: i want to take a look at a few things. it is really pushing it about 14 mark. this is an ipo. it is up 41%. certainly a great company. launched back in 1986 from massachusetts. they do childcare and such. with this ipo, certainly, a great performer. the nasdaq, s&p and of course the dow and the green. here is a look at citigroup. citigroup up a half of 1%.

research in motion continues to double. we are awaiting the blackberry ten. netflix jumping 14.5%. a lot of folks getting rid of hbo. starbucks looking really good. lots of traffic. cheryl: thank you. dennis: question of the day, is al gore just a big fat hypocrite? he hates global warming, but he just sold his cable tv station. a jot in oil and that gas. he will pocket $100 million in that field. now, al gore has a new book out and he is going on tv to promote it even as he bashes the media.

forcing politicians to take money from big business. gore going on letterman, the daily show and today. this could get awkward. let's talk about our current vice president that joe biden. he was on google chat yesterday calling for more research. why no research into violent films? hollywood is a large supporter of the obama administration. a director has been chosen for the next star wars film. jj williams. the film comes out in 2015. patients. cheryl: i still miss "lost." small business owners have sought compliance with the federal trade commission. they felt that yelp put pressure on small businesses. according to the complaint after a yelp sales call in which a

business owner to decided to the client and add. no member of the team will be tempted to "game the system." there is the stock. up $0.13 today. dennis: regulation nation. why new rules may force the porn business to leave california. we have the vivid ceo coming up. cheryl: take a look at some of the winners on the nasdaq today. as you can see, apple still is not one of the names. starbucks is there. ♪ officemax can help you drive supply costs down... and down.

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dennis: regulation nation. the adult entertainment industry trying to move out of california. per far -- requiring performers to work on gnomes. thank you for being with us, steven hirsch. what is the problem that l.a. county is trying to solve here? >> i do not think l.a. county was trying to solve any problem. there was a group, aids healthcare foundation, that put this on the ballot. spent millions of dollars campaigning. they got this thing pass. it is a solution looking for a

problem, but there really is no problem. dennis: does it for the industry because customers simply do not want that? maybe they want to see it more dangerous sex than they have in their own lives. >> yes, it is true that consumers do not want to watch movies with condoms. movies are being shot all over the world without condoms. the rest of the world is being subjected to something else. we do not think that is fair. dennis: how many jobs does your industry employee, globally? >> the l.a. times said 10,000 jobs and one billion-dollar industry within the city of los angeles, or, the county of los angeles. certainly, there are a lot of people that are employed. i do not think that the county wants to push us out. we are in this position where we have no choice. dennis: you would think in the porn industry, that is where hiv

would run rampant, if anywhere. why hasn't hiv then a big problem in your industry? >> the testing has been in place for many years. it works and it works well. every performer is tested every 15 or 30 days. as a result of that, there has been absolutely no hiv transmitted in the industry. the "new york times" said that the adult film industry is a model for hiv protection. this does not make sense, but we have no choice to move forward. dennis: is this part of a bigger things? some businesses tell me it is the worst day to try to build a business and. >> i am not sure about that. that is a question for them. for us, we would like to continue to produce our movies

here. this is where the majority of companies are based. if forced to, we will move elsewhere. dennis: you have filed this lawsuit. what are your hopes for success. do you think you will win? >> well, i do. we would not have filed it if we did not think we would win. we believe we have a right to freedom of expression. there has to be an actual problem in need of solving. clearly, there is no problem. not one case of hiv. we do not believe that there is any reason for the government to common and impede on our first amendment right. dennis: 56% voted in favor. thank you for being with us, steven hirsch of vivid entertainment. good day, sir. >> thank you, dennis. cheryl: the u.s. accounted for nearly 90% of the world's

insurance lockers. the largest were hurricane sandy costing $65 billion. the year-long and west drought with a cost of $35 billion. global natural disasters combined $200 billion over all. anyway, the deep freeze gripping much of the nation is pumping out the energy markets and worrying about of the electric companies. dennis: plus, one of the largest investment integers in the u.s. this god is huge. don donahue joins melissa and lori exclusively next. ♪ ♪

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